As the world’s least industrialised region with a youthful and fast-growing workforce, African policymakers have for decades put industrialization at the top of their development agendas. To date, however, industrialisation policies have failed as the share of manufacturing industry in sub-Saharan GDP has declined over the past 35 years to 10 per cent from 16.5 per cent in 1980.
In two of the few countries that did industrialise rapidly – South Africa and Zimbabwe – manufacturing’s share in GDP has halved from earlier peaks in the 1990s so that today both are striving to reverse this “premature de-industrialisation.” Zimbabwe, though, is hardly typical. Read more
Zimbabwe is increasingly pinning its hopes on its mining industry to beef up the government coffers. The government is keen to tap into the sector’s huge potential – it holds the second largest platinum reserves globally and its diamond fields are also reportedly ranked among the top five diamond reserves in the world.
But mining needs support to get over the constraints of high production costs, excessive fees, and falling commodity prices. So the government is planning to issue it’s first bond aimed at financing the mining sector. Will it be able to convince investors to participate? Read more
Ever since the Zimbabwe government published its plans to localise majority ownership of the country’s mines, mixed messages have dominated the debate over investment and growth.
Last week was no different, with the finance minster, Tendai Biti, and miner Amplats making positive noises about investment which seem rather optimistic, to put it mildly. Read more